Allow me at the outset to express to you, Sir, our warm felicitations on your election as President of the General Assembly at its fifty-ninth session. We congratulate Mr. Julian Hunte on his successful stewardship of the fifty-eighth session of the Assembly. I also reaffirm our deep appreciation for the wise leadership of the Secretary- General, Mr. Kofi Annan, and his services for the cause of peace and progress in the world. A profound transformation is under way in international relations. The dangerous balances of the cold war have been replaced by the complex and equally dangerous realities of our world today. It is a world marked by intensifying globalization of economies, production, trade and information, on one side; and by terrorist violence, poverty and disease, on the other. The growing asymmetries in power among States, discrimination in the dispensing of international justice, repression of peoplesí legitimate aspirations and growing socio-economic disparities have precipitated new threats to international peace and to international security: the threats of terrorism, proliferation of weapons of mass destruction, and imploding States. The world today sees turmoil and upheaval everywhere, especially in the third world, and more specifically in the Muslim world. Too many fronts have been opened and too many battle lines have been drawn. The time for closing fronts has come. The world today is crying for peace, reconciliation and reform. Our objective today has to be harmony through reconciliation and accommodation, globally and regionally. Terrorism poses the most urgent threat to many countries, including the most powerful States. For many of us, the terrorist threat is very close and may be very personal. Terrorism threatens Pakistan's vital national interests and objectives. We have thus participated actively in the unprecedented global campaign against it. Pakistan has led the way in that campaign. Our counter-terrorist campaign is ongoing. Global cooperation against terrorism has been highly successful. Determined and collective action has contained and disrupted the violent agendas of the terrorists. We are winning the battle against terrorists. However, what we are doing is insufficient to win the ultimate war against them. The immediate anti-terrorist response has to be accompanied by a clear long-term strategy that strikes at the root of the problem if we are to ensure final success against this scourge. I have proposed a two-pronged strategy of enlightened moderation to overcome terrorism and prevent a clash of civilizations. The most recent Islamic Summit, in Malaysia, endorsed that plan, which involves, on the one hand, internal socio- economic reform in the Muslim world and, on the other, active support from the major Powers to ensure political justice and socio-economic revival for all Islamic peoples. While the Islamic world has taken its first step in the form of nominating a Commission of Eminent Persons to propose measures for a renaissance in the Muslim world, the major Powers of the West have yet to show movement in seriously trying to resolve internationally recognized disputes affecting the Muslim world. The industrialized world must support the endeavour to bring about an Islamic renaissance, especially through adequate financial and technical assistance and larger trade opportunities. More important, justice must be offered to Islamic peoples in the form of the resolution of all outstanding international disputes which affect Muslims. There is no time to lose. Action has to be taken before an iron 21 curtain finally descends between the West and the Islamic world. The tragedy of Palestine is an open wound inflicted on the psyche of every Muslim. It generates anger and resentment across the Islamic world. Continued Israeli violence and the Israelis' erection of the illegal separation wall, usurping more Palestinian land, as well as suicide attacks by misguided Palestinians, are frustrating the prospects of peace and prolonging the agony of the Palestinian people. While Pakistan stands for peace, recognizing the right of Israel to exist as also the right of the Palestinians to have their own homeland, we can never accept the usurpation of additional Palestinian land. Israel has no right to erect its separation wall beyond its 1967 boundaries. Pakistan calls on Israel to withdraw the wall from all occupied Palestinian lands, taking it back to the pre-1967 boundaries. We also call on Israel to stop the daily atrocities against Palestinians. Pakistan also appeals to President Yasser Arafat to use his influence to reciprocally halt the intifada and give peace a chance. A major responsibility rests with the Quartet, and in particular with the world's greatest Power, the United States, to secure a fair and peaceful solution to the problem, realizing the vision of two States, Israel and Palestine, living side by side in peace, harmony and security. The United States can and must play the role of a just broker of peace. Peace must succeed in the Middle East; failure is no longer an option. It has always been my conviction that Pakistan and India can resolve all their differences, including over Jammu and Kashmir, through a sincere dialogue. The dangerous confrontation of 2002 and the three wars prior to that between our two countries have demonstrated that there is no military solution to our problems. The aspiration to peace enjoys popular support in Pakistan and, I believe, in India as well. Neither country can achieve its ambition for social and economic progress in the absence of peace. We must achieve peace for the sake of the impoverished people of South Asia ó for their development and prosperity. After several aborted attempts, Pakistan and India have been able to initiate confidence-building measures and a composite dialogue this year to address all outstanding issues. Pakistan has pursued this process with complete sincerity, giving bilateralism a final chance. We feel that the dual channels of confidence-building measures and the dialogue process must proceed in tandem. We also are firmly committed to resolving all disputes with India peacefully, including the Kashmir dispute. That issue cannot be ignored. Its resolution cannot be delayed inordinately. We desire a resolution for Kashmir which is just and acceptable to India, Pakistan and the people of Kashmir. We also seek strategic stability with India. I am glad to say that up until now, the normalization process has progressed well, in a cordial atmosphere. Now that the negotiations are entering the difficult stage of grappling with solutions to previously irreconcilable disputes, Pakistan hopes that India will show the same sincerity, flexibility and boldness that Pakistan will demonstrate. I look forward to my meeting the day after tomorrow with Prime Minister Manmohan Singh. I would like to convey to him that this is the moment for peace; we must not allow it to slip away. Iraq has taken a serious turn, to the anguish of the entire world community. It is imperative that together with closing the Palestine and Kashmir fronts, we also wind down the Iraq confrontation. Pakistan stands for restoration of peace and stability in Iraq to ensure its unity and territorial integrity. That can only be achieved through handing over governance authority to the people of Iraq and allowing them full control over their natural resources. Internal law and order and security can be best promoted by local Iraqi police and militia, who need to be built up expeditiously. At an opportune time, and at the request of the people and Government of Iraq, the Muslim world could play a role in bringing peace and harmony to this conflict-torn nation. The forthcoming elections in Afghanistan will be an important landmark in the countryís progress towards democracy and stability. Pakistan will do all it can to prevent terrorists from using our territory to disrupt the Afghan election process. The subsequent parliamentary elections in April 2005 would also augur well for self-governance in Afghanistan. While the political channel is progressing well ó and we wish President Karzai all success ó the process of building the Afghan National Army and reconstruction efforts need to be accelerated in order to install durable peace in Afghanistan. In our globalized world, peace and development are interdependent, now more than ever before. Despite 22 dynamic growth in some parts of the developing world, economic and social disparities are increasing. The rich are richer; the poor are poorer. Over 2 billion people on our planet ó a quarter of the worldís population ó live in abject poverty, afflicted by hunger, disease and conflict. Islands of peace and prosperity cannot coexist for long within oceans of instability and poverty. A bold and innovative global strategy is required to redress the growing inequalities in the world. Good governance is a precondition for development; but the need to rectify the glaring inequities and imbalances in the international financial and trade systems is equally essential. Official development assistance can and must be doubled. Innovative ways can and must be adopted to generate the financial resources required for development. The billions transferred abroad by corrupt leaders should be returned to the looted countries to finance poverty alleviation, education and health. International investment flows should be consciously directed to the poorer developing countries, where such funds could unleash the latent power of the poor for consumption and production. We also know by now that trade, and not just aid, is the way to promote growth and to benefit from globalization. However, it has to be made more equitable. Unfair agricultural subsidies should be eliminated and high and escalating tariffs that discriminate against the products of the poor should be removed. Special and differential treatment should be offered to disadvantaged developing countries. In my view, we need more than a level playing field; we need a field tilted in favour of the developing countries. Unless the worldís leaders generate the political will required to agree and implement those measures urgently, the Millennium Development Goals will remain a mirage. In Pakistan, we are well on the way to transforming our country into a modern, progressive, tolerant, democratic, Islamic state, reflecting the vision of our founding father, Quaid-e-Azam. Democracy has been restored in Pakistan. The people have been empowered through a revolutionary local government system. Our women have been empowered. However, like other developing countries, Pakistan confronts several challenges. But, we are confident of success. Our governance is good. Our national priorities are absolutely clear. Today, there is welcome resurgence of support for multilateralism. This must be a multilateralism based on the principles of the United Nations Charter, a cooperative and democratic multilateralism. It must seek just, peaceful and durable solutions to conflicts and disputes. It must promote a programme for nuclear disarmament and non-proliferation. It must foster global development and global prosperity. All our collective aspirations can best be pursued within this world Organization. The United Nations must be strengthened and revitalized to respond to the challenges of twenty-first century. The United Nations Security Council should become more effective, democratic and representative. There is no agreement on the aspiration of a few States to acquire permanent membership in the Security Council. The overwhelming majority of States are against the creation of new centres of privilege. The Council should be enlarged to ensure the representation of the mostly small and medium States which have joined the United Nations over the last three decades. We have to consider new ideas to craft a consensus on the enlargement of the Security Council. Pakistan believes that a new consensus on peace, security and development, can and should be achieved on the occasion of the sixtieth anniversary of the United Nations next year. The summit meeting suggested by the Secretary-General for next year must lead to a negotiated final document adopted through consensus. That historic summit will, I hope, and Pakistan hopes, create a new paradigm to achieve universal peace and prosperity.